Philippine President Ferdinand Marcos Jr casts his ballot in Batac City on Monday. Marcos Jr has three years left in office. AP
Philippine President Ferdinand Marcos Jr casts his ballot in Batac City on Monday. Marcos Jr has three years left in office. AP
Philippine President Ferdinand Marcos Jr casts his ballot in Batac City on Monday. Marcos Jr has three years left in office. AP
Philippine President Ferdinand Marcos Jr casts his ballot in Batac City on Monday. Marcos Jr has three years left in office. AP


The Philippines is even more polarised after the midterm elections


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May 15, 2025

With Wednesday’s midterm elections having split the Philippine Congress, politics in the country has taken an unexpected but interesting turn. How the resulting polarisation affects governing, and by extension the outcome of the 2028 presidential election, remains to be seen.

Midterm elections in the Philippines are usually a straightforward affair. Just as in the US, which established the current political system in the South-East Asian nation when it was an American colony, the midterms serve as a referendum on the sitting president. Where the Philippines diverges, however, is the generally strong performance of incumbent candidates, largely thanks to backing from state institutions.

In a country with few legitimate political parties or movements, it is often those candidates who are aligned with the establishment or with ruling dynasties that dominate elections both local and national. And so, just weeks before the current midterms, almost all major polling agencies projected a strong performance for candidates allied to President Ferdinand Marcos Jr, who is heading into the legacy years of his single, six-year term in office.

And yet there were major surprises in store.

The most notable takeaway was the impressive performance of candidates backed by former president Rodrigo Duterte, winning four of the 12 senatorial seats up for grabs and clinching several mayoral contests across the country. They dominated all the local races in the Duterte family’s home turf of Davao City in southern Philippines, while scoring major upsets in metros across central Philippines and in the capital, Manila.

Former first lady Imelda Marcos, seated, is the mother of the sitting president and a part of the powerful Marcos dynasty. AP
Former first lady Imelda Marcos, seated, is the mother of the sitting president and a part of the powerful Marcos dynasty. AP

Just as surprising was how well the long-marginalised liberal forces of Philippine politics performed. Former senator Paolo Benigno Aquino, the scion of a once-powerful dynasty that used to rival Mr Marcos Jr’s family, tasted victory – as did the progressive Akbayan party in a number of tightly contested congressional races that have historically gone to traditional, centrist politicians and regionalist forces. There were several other shocking results, including defeats for prominent celebrities in national as well as local races, that might reflect interesting shifts in voting patterns across the country.

This, of course, isn’t to say that allies of the Marcos family did not fare well: they won half of the senatorial seats as well as the bulk of the congressional and gubernatorial races across the country. Martin Romualdez, who is Mr Marcos Jr’s first cousin, is expected to retain his position as Speaker of the House of Representatives after his win.

The upshot to these results, however, is that the Philippines is left with an even more polarised and uncertain political landscape. There are now three major political forces – pro-Marcos, pro-Duterte and the so-called “liberal opposition” – and they will all be jockeying for influence in the corridors of power with an eye on the next presidential election, which is still three years away.

The final outcome, with votes still being counted, appears to be a reflection of the high-stakes political drama that played out between the country’s two biggest dynasties – the Marcoses and the Dutertes – particularly so close to the midterms.

For background, the two dynasties had forged an alliance of convenience ahead of the 2022 presidential election. But almost immediately after their victory, fissures began to appear between Mr Marcos Jr and vice president Sara Duterte, the daughter of Rodrigo Duterte. The ensuing, very public power struggle – that even included Sara Duterte issuing a death threat to Mr Marcos Jr – culminated in her resignation.

Tensions escalated in the thick of the election campaign, when Rodrigo Duterte was arrested and handed over to the International Criminal Court over his alleged “crimes against humanity” in connection with his controversial “war on drugs” while in office. The development galvanised the Dutertes' base, with many seeing this is a politically motivated move on the part of the Marcoses, with the former president securing a landslide victory in the mayoral race for Davao – even if he is likely to spend the rest of his life in detention in faraway Europe.

Former Philippine vice president Sara Duterte during a midterm election rally in Manila last week. Sara is the daughter of former president Rodrigo Duterte. AFP
Former Philippine vice president Sara Duterte during a midterm election rally in Manila last week. Sara is the daughter of former president Rodrigo Duterte. AFP

Another factor that contributed to setbacks for Mr Marcos Jr was how effectively the liberal opposition forces campaigned on alleged anomalies in the current administration’s fiscal practices. They accused the incumbent and his allies of corruption and the manipulation of the national budget to bankroll the campaign of pro-Marcos candidates during the midterms. It also didn’t help the Marcoses that the liberals and the Dutertes mostly abstained from criticising the other, thus creating a de facto tactical coalition.

Mr Marcos Jr made mistakes on the campaign trail, too. The conflict-averse President ignored criticisms from both camps, but his studied silence – based on the assumption that he had the advantage of being a sitting president – may have been a tactical error.

Going forward, a less co-operative Congress may be less inclined to work with the President. A more combative Senate is likely to stall his agenda. It will probably also drag its collective feet over the question of whether to convict Sara Duterte, who was impeached by Congress this year on charges of corruption and abuse of power.

The resulting stalemate in both chambers of the legislature will give the liberal opposition politicians outsized influence on a number of issues. This “third force” in Philippine politics is likely to steer clear of building a full-fledged alliance with either of the two dynasties. But it is expected to push through a progressive agenda that could then create momentum for itself in 2028.

How the future pans out is anyone’s guess, but the midterm results have undoubtedly added plenty of intrigue to the already drama-filled Philippine political landscape.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

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Singapore

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Australia

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South Korea

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Schedule:

Pakistan v Sri Lanka:
28 Sep-2 Oct, 1st Test, Abu Dhabi
6-10 Oct, 2nd Test (day-night), Dubai
13 Oct, 1st ODI, Dubai
16 Oct, 2nd ODI, Abu Dhabi
18 Oct, 3rd ODI, Abu Dhabi
20 Oct, 4th ODI, Sharjah
23 Oct, 5th ODI, Sharjah
26 Oct, 1st T20I, Abu Dhabi
27 Oct, 2nd T20I, Abu Dhabi
29 Oct, 3rd T20I, Lahore

MATCH INFO

Uefa Champions League semi-finals, second leg:

Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE

Game is on BeIN Sports

MATCH INFO

Fixture: Thailand v UAE, Tuesday, 4pm (UAE)

TV: Abu Dhabi Sports

MATCH RESULT

Liverpool 4 Brighton and Hove Albion 0
Liverpool: 
Salah (26'), Lovren (40'), Solanke (53'), Robertson (85')    

Updated: May 15, 2025, 4:00 AM